Cryptocurrency hedge fund

Cryptocurrency hedge funds are investment funds which pool capital from investors into a group of assets focusing entirely, or partially, on cryptocurrencies or other decentralized digital assets. Funds are actively managed by experts or insider investors, who charge a fee for the analysis and selection of investment opportunities. A wide variety of both manual and automated strategies exist for diversifying and allocating funds; including restricting to high value market cap, hand picking specific assets, and much more. Investors following these strategies typically seek to reduce risk exposure to volatility in the value of any specific cryptocurrency on the market. In addition to hedge funds specializing exclusively in cryptocurrency assets, traditional hedge funds have increased their exposure to cryptocurrency assets.

Regulatory uncertainty

Cryptocurrency hedge funds invest in cryptoassets through a variety of mechanisms and instruments including initial coin offerings, pre-sales, SAFT, SAFTE, JCO and others. Most of these investments hold additional risk due to the regulatory uncertainty, especially from US regulators such as the SEC and CFTC. The SEC has released a number of recommendations and statements regarding ICOs and has taken action against securities some cryptoasset securities offerings such as Munchee Inc and Centra. The status of individual cryptocurrencies as a security, commodity, property, or some other status is still unclear. Despite this uncertainty, the number of cryptocurrency hedge funds increased significantly in 2017 as both crypto and traditional hedge funds produced high returns from cryptoassets compared to traditional assets.

Tokenization

Several cryptocurrency hedge funds have released tradable cryptocurrency tokens for example Blockchain Capital (BCAP), TaaS Fund (TAAS), and Blackmoon Crypto (BMC). A new class of decentralized asset management platform has emerged around the crowdsourcing or open sourcing of fund management with associated tokens. ICONOMI is developing an Open Fund Management Platform in which individuals can create an array of Digital Asset Arrays (DAAs) where others can invest. Numerai is building an AI and machine learning hedge fund platform for data scientists is building an AI and machine learning hedge fund platform for data scientists. Cindicator is also developing community and AI driven asset management fund.

List of cryptocurrency hedge funds

Fund name

People

Location

Website

Portfolio

Token

1confirmation

Nick Tomaino

1840 Green Street, Suite 2, San Francisco, CA, 94123 United States

http://www.1confirmation.com/

Alpha Bit

Liam Robertson

http://www.alphabit.fund/

ABC

Alphabet Coin Fund

https://alphabetcoinfund.com/

AltMoneyFund

John Chalekson

http://altmoneyfund.com/

Arrington XRP Capital

Michael Arrington

http://arringtonxrpcapital.com/

Astonaut Capital

Matt Dibb, Michael Gord

https://astronaut.capital/

Auryn Capital

http://www.auryncapital.co/

Base 58 Capital

Fabio Federici

Zurich, Switzerland

https://base58.capital/

Bitfin Capital

Dmitry Ufaev, Julian Zegelman

Cayman Islands

http://bitfin.co/

http://bitfin.co/#past

BitSpread

Cedric Jeanson, Ritika Sen, Stephane Redon

http://www.bitspread.co.uk/

BKCM Digital Asset Fund

Brian Kelly

300 Park Avenue, New York, NY 10022

http://bk.capital/

Blackmoon Crypto

Oleg Seydak, Ilya Perekopsky

https://blackmooncrypto.com/

BMC

Bletchley Park Asset Management

http://www.bletchley.com/

Block View Capital

https://www.blockviewcapital.com/

Blockchain Capital

P. Bart Stephens, W. Bradford Stephens

One Ferry Building, Suite, 255 San Francisco, CA 94111

http://blockchain.capital/

http://blockchain.capital/portfolio/

BCAP

BlockTower Capital

Ari Paul, Matthew Goetz

Connecticut, US

https://blocktower.com/

Blocktown Capital

James Todaro, Joseph Todaro, John Todaro

Michigan, USA

https://www.blocktown.capital/

Blockweather Holding

Shane M. Shields, David E. Henry

https://www.blockweather.com/

BlueYard Capital

Jason Whitmire, Ciarán O'Leary

Berlin, Germany

https://ipfs.io/ipfs/QmRum5N7k45EEirRSxHDoJXbqZrUzzteHznMS7asZz9Pgs/

https://ipfs.io/ipfs/QmRum5N7k45EEirRSxHDoJXbqZrUzzteHznMS7asZz9Pgs/#portfolio

Cambrian Asset Management

http://cambrianasset.com/

Cindicator

Mike Brusov, Yuri Lobyntsev

CND

CoinFund LLC

Aleksandr Bulkin

https://coinfund.io/

CrowdWiz

Michael Golod, Slavena Savcheca

https://crowdwiz.io/

WIZ

Crypto Asset Fund

Timothy Enneking

https://www.crypto-asset-management.com/

Crypto Fund AG

Jan Brzezek, Dr. Tobias Reichmuth, Mathias Maurer

28 Gotthardstrasse, Zug, Switzerland

https://cryptofundag.ch/en/

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Timeline

December 4, 2017

The Multichain Asset Management Association is launched

The Multichain Asset Management Association (MAMA) is an international consortium of companies in the investing an asset management space in blockchain technology. The consortium is based in Zug, Switzerland, also known as crypto valley for its active approach to blockchain technologies.

November 28, 2017

Michael Arrington announces Arrington XRP Capital, a digital asset fund denominated in XRP

At the Consensus conference in New York, tech entrepreneur Michael Arrington announced Arrington XRP Capital, a one hundred million dollar cryptocurrency hedge fund that pays out investors in the digital currency XRP based on the digital asset offered by Ripple.

November 27, 2017

Cambrian Asset Management is launched

Cambrian was founded by Martin Green, Jay Posner, and Adam Jackson.

September 1, 2016

Polychain capital founded

Polychain capital was founded in September 2016 by the first employee at Coinbase Olaf Carlson-Wee.

September 1, 2014

MetaStable is launched

The MetaStable cryptocurrency hedge fund launched in September 2014 backed by Andreessen Horowitz, Sequoia Capital, Union Square Ventures, Founders Fund and Bessemer Venture Partners.